This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 103 No. 2 (April 2013)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Misclassification Errors and the Underestimation of the US Unemployment Rate

Article Citation

Feng, Shuaizhang, and Yingyao Hu. 2013. "Misclassification Errors and the Underestimation of the US Unemployment Rate." American Economic Review, 103(2): 1054-70.

DOI: 10.1257/aer.103.2.1054

Abstract

Using recent results in the measurement error literature, we show that the official US unemployment rate substantially underestimates the true level of unemployment, due to misclassification errors in the labor force status in the Current Population Survey. During the period from January 1996 to August 2011, the corrected monthly unemployment rates are between 1 and 4.4 percentage points (2.1 percentage points on average) higher than the official rates, and are more sensitive to changes in business cycles. The labor force participation rates, however, are not affected by this correction.

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (172.91 KB) | Online Appendix (1.06 MB)

Authors

Feng, Shuaizhang (Shanghai U Finance and Economics)
Hu, Yingyao (Johns Hopkins U)

JEL Classifications

E24: Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
E32: Business Fluctuations; Cycles
J21: Labor Force and Employment, Size, and Structure


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us